function of the group.s wealth level, or equivalently, that the representative agent has a state-dependent utility function. We …

benefits in the very long run. More specifically, we examine in an expected utility framework how the uncertainty on the growth …

Expected utility provides simple, testable properties of the optimum behavior that should be displayed by risk …-averse individuals in risky decisions. Simultaneously, given the existence of paradoxes under the expected utility paradigm, expected … utility can only be regarded as an approximation of actual behavior. A more realistic model is needed. This is particularly …